Singapore: Gold held steady on Thursday but was still near its lowest in nearly four months, following a two-day sell off from a stronger dollar and firmer global equities.
Fundamentals
Spot gold was flat at $1,258.90 an ounce, after losing nearly 3 per cent in the previous two sessions. On Wednesday, the metal hit $1,255.66 - its lowest since early February. A stronger dollar makes gold more expensive for holders of other currencies, while higher equities dent gold's appeal as an investment-hedge. Bullion investors were eyeing developments in Ukraine, where relative calm returned to the streets of Donetsk on Wednesday after the biggest battle of the pro-Russian separatist uprising in eastern Ukraine.
Canadian miner Barrick Gold has come to an initial agreement with local indigenous peoples in Chile who have opposed its stalled Pascua-Lama mine, taking a first step on what may be a long road to reactivating the project. Deadlock in South Africa's crippling 18-week platinum strike will soon be broken after movement made on both sides of the wage dispute, the country's new mines minister Ngoako Ramatlhodi declared on Wednesday.
Market News
The US dollar hovered at a two-month high against a basket of major currencies early in Asia on Thursday, having benefited from a shakeout of long positions in sterling and further weakness in the euro.
